Your Primer to Healthcare Mergers and Acquisitions

Latest Articles

Valuation
4 Reasons Why Valuation Data May Be Rubbish (Especially In The Lower Middle Market)

Recently, we had a chance to review published data on a variety of actual 2014 transaction values for “lower middle market” M+A purchase multiples, including healthcare companies.  In plain English, this means the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of various companies multiplied by a number to achieve the actual selling price.  According to numerous external market sources like Axial, Pitchbook, and GF Data, their average multiple of EBITDA ranged from 6.5x to 11x. That’s quite a range and there is excitement because these are the highest multiples of the past decade.

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Exit Planning
It's All In The Preparation: 8 Actions To Improve Your Performance Via Due Diligence

However, there is a different way to look at due diligence – if you prepare for it, you can improve performance immediately and reduce the pain down the road, even if you are a nonprofit organization.  Here are eight basic due diligence practices you can undertake to make a difference now.

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Exit Planning
4 Reasons Why It's So Hard To Make A Great Offer

Recently, I was working with an executive who was interested in purchasing another company as part of his organization’s strategic plan.  As he attempted to make an offer, we struggled through several stages of “What needs to be in the offer?” “This may be more than we can handle,” and, ultimately, “What if the business tanks after we buy it?”  Whether you are a buyer, seller, or standing on the sidelines, these are all very reasonable concerns.

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Exit Planning
5 Ways To Help Buyers Acquire Your Company

Though it may sound odd, one of the most important tasks for the seller of a healthcare business is enabling the buyer to successfully make the purchase.  While there is an incredible wealth of valuation information available to today’s buyer, a successful transition often relies on the ability of the seller to assist the potential purchaser in some critical areas.

I suggest five important ways in which the seller can assist buyers.

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Exit Planning
6 Principles For A Meaningful Transition

My experience and those of many clients since have taught me a valuable lesson about the importance of preparation for the transition.  Whatever your circumstance may be, here are six principles to consider for your transition.

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Exit Planning
7 Things To Consider Before Hiring More (Or Any) Employees

Today’s businesses are not just factories where it is a matter of adding another assembly line or shift to produce more products.  They require more agility than ever before, whether in healthcare or any other marketplace.

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Exit Planning, Healthcare Sectors
Mixin' It Up And Makin' It Right: 5 Ways To Diversify And Strengthen Your Home Care Company

The challenge of leading a successful home care company requires executives to continually focus on diversifying their base to ensure profitable and quality-driven operations in the future.  I suggest five ways to focus your leadership efforts

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Exit Planning
6 Simple Ways To Establish A Remarkable Brand

In more than 30 years of professional experience, I have encountered numerous healthcare and human service companies with outstanding reputations and brands.  There are six simple ways they successfully established a remarkable brand.

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Exit Planning
7 Principles For Being A Great Buyer

Additionally, we also encounter entrepreneurs who are trying to enhance their value through acquisition. Whether it is the purchase of a small therapy practice, a homecare/hospice company, or a large regional disabilities organization, they are looking to draw on this acquisition as a platform for future success.

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Exit Planning
5 Truths About Your Strategy

In other words, strategy is the vision of what an organization should be and provides guidelines for the choices made at the outset and along the way.

With this in mind, here are five truths for the leaders of companies, healthcare and otherwise, who are looking to formulate a strategic view of their marketplace.

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Exit Planning
7 Critical Factors For A Successful Transaction

Based on over 30 years in the marketplace, it is clear to me that there are several critical factors in a successful transaction that sellers and buyers should consider early in the process.

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Healthcare Sectors
4 Dangers of Not Knowing What Things Cost

For business people, healthcare and otherwise, knowing what things cost is essential. If you are accurate you can adjust other variables including cash flow. If not, you can lose your business.

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